Senior citizens reaching age 65 become eligible to receive both traditional Medicare or Medicare Advantage if they so choose. For those persons who believe that their health care costs will exceed the amounts covered by Medicare, the option exists to elect for additional coverage through a Medicare Supplement or Medigap policy as it’s popularly called. It should be understood that Medigap policies are not a replacement for Medicare, but an additional policy that is purchased from private insurance companies to provide benefits not covered with traditional Medicare.
What Must a Person Do to Purchase a Medigap Policy?
If a person wants to purchase a Medigap policy, she/he can do so without having to pass underwriting so long as they purchase the plan at the time of their initial enrollment into Medicare. A person may elect to purchase a Medigap policy in subsequent years but will have to pass underwriting. Additionally, a person must also elect for traditional Medicare (Part B). No persons electing for Medicare Advantage are allowed to purchase a Medigap policy.
What Benefits Does a Medigap Policy Provide?
The answer to that is best described by explaining what is Medicare supplement Plan F, or Medigap Plan F. This is because Plan F is the most popular Medigap plan sold to senior citizens. Medigap Plan F covers the hospital coinsurance for treatment in a skilled nursing facility and many rehabilitation services. Plan F also covers the deductibles charged by Medicare Parts A & B. Any hospitalization of either 1 day up to sixty requires a deductible of $1,184 for the year 2013 to be paid for out of pocket by the Medicare recipient. Medigap Plan F covers that deductible. Plan F also covers the Medicare Part B deductible which is $147 per year. Most importantly, Plan F also covers what are termed “Medicare Part B excess charges”. What are those? Those are the charges a patient can incur when the doctor does not accept the amounts of reimbursement Medicare offers. With the looming Medicare cuts that Obamacare is imposing as a cost savings mechanism, this benefit of Plan F can be the a patient being able to afford vital treatment or going without it. Plan F also covers patients when they are travelling abroad. Traditional Medicare does not cover persons when travelling overseas.
What Does it Cost?
Medigap Plan F premiums range from $140 to $299 in the year 2013. However, the cost of the policy should always be compared to what medical costs are likely to be for a person without the additional coverage. Plan F’s popularity speaks for itself.
Medicare is not a tricky subject but if you are about to make the transition to Medicare coverage then you know that the insurance companies are flooding you with information that muddies the waters of understanding. To get a better understanding let’s look at the parts of traditional Medicare.
Medicare Part A
Part A is the oldest part of Medicare and is designed to help with the medical costs of being admitted into the hospital. The insurance has both deductibles and coinsurance. It also provides coverage for skilled nursing care and hospice care but both have copays.
Medicare Part B
Part B is designed to help with out patient services. So if you are not admitted to a hospital but receive care then this part of Medicare will help with the cost. This includes doctor’s visits and minor surgery. There is both a deductible of $147 and coinsurance of 20% that goes along with this part of Medicare.
Medicare Part D
Part D was designed to help with the cost of prescription drug coverage and is the most recent addition to Medicare coverage. It will not cover all costs but it can be tailored to each individual to make sure that your prescriptions can be obtained at a great discount. The cost of each one of these plans varies based off of what medications you are taking. If you are not taking any medications then you can get a plan as low as $15 per month.
Medicare Supplement Insurance
Medicare supplements, also known as Medigap plans, have been designed to cover the gaps left by Medicare Part A and Part B. Most people choose to add one of these plans so that they can make sure there are no large expenses that result from a hospitalization or ongoing medical condition. Medicare supplement plan F is the most popular plan of the ten available Medigap plans. It’s popularity can be attributed to the fact that it will fill all of the coverage gaps. While the other plans can still meet your needs they do not offer the same comprehensive coverage of Medicare supplement plan F.
The ten plans are standardized across the United States except for in Massachusetts, Wisconsin, and Minnesota, where they have adopted their own plans. If you buy one of the available Texas Medicare supplement plans, you are going to be afforded the same coverage as the identical plan in Pennsylvania, Ohio, Georgia, etc.
Knowing all this information will allow you to make the best choice for your Medicare needs and make sure that when you do need your Medicare insurance you are not left holding a large bill.
There are SO many options when searching for term life insurance online. It’s easy to get overwhelmed with the amount of information out there. In this article will show you how to find inexpensive term life insurance.
The first thing you’ll need to know is that every life insurance company will look at your risk differently. The key in finding the most affordable life insurance rate is to find a company that will look most favorably at your situation.
With this said, instant quote engines you see online won’t always be accurate. Unfortunately there’s no way for a computer program to factor in all of your health issues. However, if you don’t have any health issues than an instant life insurance quotes are a great tool. Just make sure you’re using an independent life insurance agency who offers you all the top-rated carriers.
If you have any health issues, you want to speak with a high risk life insurance specialist. The worst thing you can do is call a life insurance call center agent who has no idea how to underwrite your risk. That’s a mistake most people make when buying life insurance because those call centers have the biggest marketing budgets and are the easiest found online.
Also when you do apply for life insurance, make sure you prepare for your medical exam. You may be the most active person you know with no health issues but if you don’t fast for eight hours prior to your exam and if you don’t drink enough water, your lab results can become skewed. This is the most common reason why life insurance rates are increased with typically healthy people.
Don’t forget to let your agent know about any foreign travel, hazardous activities or even any family history of heart disease or cancer. These things are typically overlooked I most agents and is the second biggest reason why life insurance rates are increased.
So the bottom line is just use an independent life insurance agent who’s experience in underwriting your risk and they’ll make sure you secure the most affordable life insurance rates.
Medicare supplemental insurance policies are sold by private insurance companies to fill in some of the gaps in healthcare coverage that you will find in Medicare. They allow people to be nearly fully insured for their healthcare needs.
During open enrollment, your right to purchase a Medicare supplement policy is guaranteed, no matter your health condition or past medical history. Insurers cannot refuse to offer you a policy. You also cannot be asked to pay a higher premium because of insurance risks you may bring to the table. For example, a smoker will pay the same premiums as a non-smoker. There is no medical screening for applicants during the open enrollment.
If you miss the open enrollment, insurance providers can charge you a higher premium for pre-existing health conditions. They also can outright refuse to offer you insurance coverage at all if they choose to.
Open enrollment lasts for six months and it begins on the first day of the month in which you are 65 or older and enrolled in Medicare Part B.